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    Elis  313  0 Kommentare H1 2015 results

    H1 2015 results - Revenues up nearly 6%
    2015 outlook: revenues expected to grow +7%; EBITDA between €445m and €450m

    • Revenue growth of c. 6%
      • Revenue: €682.4m (+5.9%)
  • EBITDA: €204.6m (30.0% of revenues)
  • Pricing pressure in France
  • IPO success and debt fully refinanced
    • Dynamic M&A strategy
      • 6 acquisitions completed in H1 in France and Europe
      • 2 further acquisitions completed during July in Switzerland and Brazil
      • Agreement reached on the provisional sale of the Puteaux site for €54m
    • FY15 outlook updated
      • FY15 revenue growth target increased to +7.0%
      • FY2015 EBITDA expected to be between €445m and €450m (+€15m/€20m vs 2014)
    In m€ H1 2015 H1 2014* Change
    Revenues 682.4 644.3 +5.9%
    EBITDA 204.6 204.8 -0.1%
    EBIT 87.7 99.7 -12.0%
    Net result (80.6)** (20.2)  
    Adjusted net financial debt (end of period) 1,404.5 1,996.0

    Percentage change calculations are based on actual figures
    *H1 2014 figures are restated from the first application of the IFRIC 21 interpretation
    **: of which €123m are non-recurring costs related to the IPO and subsequent refinancing

    Puteaux, July 29 2015 - Elis, the leading multi-services group in Europe and Brazil, specializing in the rental and maintenance of professional clothing, textile articles, hygiene and well-being appliances, today announces its 2015 half year financial results.

    Commenting on the 2015 first half results, Xavier Martiré, CEO of Elis, said:

    "Elis' revenues grew +5.9% in H1 2015 to €682m on the back of +2.4% organic growth. This good performance was achieved despite a sluggish macro environment in Europe and Brazil. Revenue growth was driven by a sharp rebound in Southern Europe and recently completed acquisitions. However, pricing pressure in the French market had a dilutive impact on our first half margins.

    Looking to the full year, we remain confident in our growth prospects and raise our FY15 revenue guidance to +7%. We expect EBITDA to increase by €15m to €20m and land between €445m and €450m.

    Finally, the first half was marked by the IPO of Elis and the successful full refinancing of its debt. Elis now has a new financial status with an interest charge that is now a third of that paid previously and hence has larger access to financial resources. As such, the Group is able to accelerate the deployment of its 4 strategic pillars: 1) To consolidate our positions in all our geographies, 2) To continue the development of our Brazilian platform 3) To pursue the improvement of our operational excellence and 4) The launch of new products and services."


    Revenues

    Revenue growth

    In m€  

    Q1
    2015
    Q2
     

    H1
     

    Q1
    2014
    Q2
     

    H1
     

    Q1
    Change
    Q2
     

    H1
    Hospitality 62.2 83.3 145.5 59.1 77.3 136.5 +5.2% +7.7% +6.6%
    Industry 46.7 47.2 94.0 45.8 47.5 93.3 +2.0% -0.6% +0.7%
    Trade & Services 83.1 85.5 168.6 83.7 86.5 170.2 -0.7% -1.2% -1.0%
    Healthcare 39.4 39.9 79.3 38.0 38.2 76.1 +3.7% +4.6% +4.2%
    Francea 228.2 250.5 478.6 222.5 245.5 468.0 +2.5% +2.0% +2.3%
    Northern Europe 38.2 46.1 84.2 35.0 37.5 72.5 +8.9% +22.8% +16.1%
    Southern Europe 28.9 37.1 66.0 26.7 32.6 59.3 +7.9% +13.9% +11.2%
    Europe 67.0 83.2 150.2 61.8 70.1 131.9 +8.5% +18.7% +13.9%
    Brazil 22.3 22.8 45.1 13.8 22.4 36.2 +61.6% +1.8% +24.6%
    Manufacturing Entities 4.5 3.9 8.5 4.3 3.9 8.2 +5.5% +0.7% +3.2%
    Total 322.0 360.4 682.4 302.4 341.9 644.3 +6.5% +5.4% +5.9%

    a : After other items including rebates
    Percentage change calculations are based on actual figures

    Organic revenue growth

    In m€ Q1 organic growth1 Q2 organic growth1 H1 organic growth1
    Hospitality +5.2% +7.7% +6.6%
    Industry +2.0% -0.6% +0.7%
    Trade & Services -0.7% -1.2% -1.0%
    Healthcare +3.7% +4.6% +4.2%
    Francea +2.5% +2.0% +2.3%
    Northern Europe -0.8% -0.9% -0.9%
    Southern Europe +7.9% +7.1% +7.5%
    Europe +3.0% +2.8% +2.9%
    Brazil +2.0% +5.0% +3.8%
    Manufacturing Entities +1.7% -4.3% -1.2%
    Total +2.6% +2.1% +2.4%

    a : After other items including rebates
    Percentage change calculations are based on actual figures

    Revenues for the six months ending 30th June 2015 increased 5.9% to €682.4m million.

    This €38.1m increase was driven by organic growth in France, Southern Europe and Brazil along with the impact of recent acquisitions.

    France

    During the first half, revenue growth in France was driven entirely by organic growth of +2.3%. The ramp-up of large contracts was partially offset by pricing pressure.

    • Revenues for the Hospitality segment increased 6.6% despite the negative impact from the terrorist attacks in Paris during January. The roll-out of large contracts was in line with our expectations.
    • Revenues for the Healthcare segment grew by 4.2%, helped by market share gains for both short-stay and long-stay clients, with a sequential improvement in Q2.
    • Revenues for the Industry segment rose by 0.7% helped by new contracts during the first quarter. However, the second quarter suffered from lower client activity.
    • The persistently difficult macro environment (particularly for car retailer networks) led to a slight decline in Trade & Services revenues (-1.0%).

    Europe

    Revenue growth in Northern Europe (+16.1%) was driven by acquisitions in Germany and Switzerland. However, hospitality in Switzerland suffered from the rise of the Swiss franc which had an adverse impact on tourist traffic.
    Revenues in Southern Europe (+11.2%) continued to rebound helped by an improving macro environment and impressive commercial momentum in all segments including Hospitality and Industry. The Spanish acquisitions also contributed to strong growth in Q2.

    Brazil

    Revenues in Brazil (+24.6%) benefited from the impact of acquisitions. Despite the persistently difficult macro environment in the country, commercial momentum was good underscoring our view that the market has strong potential. Organic revenue growth sequentially increased to +5.0% in Q2.

    EBITDA2

    In m€ H1 2015 H1 2014 Change
    France* 162.7 164.9 -1.4%
    As a % of revenues 33.9% 35.1% -120bps
    Europe* 33.6 31.7 +5.8%
    As a % of revenues 22.3% 24.0% -170 bps
    Brazil 8.6 7.0 +22.1%
    As a % of revenues 19.1% 19.5% -40bps
    Manufacturing entities 1.4 1.6 -9.1%
    As a % of revenues 10.1% 12.7% -260 bps
    Holdings (1.6) (0.5) n/a
    Total 204.6 204.8 -0.1%
    As a % of revenues 30.0% 31.8% -180bps

    Percentage change calculations are based on actual figures
    *H1 2014 figures are restated from the first application of the IFRIC 21 interpretation

    H1 EBITDA was flat compared to the same period last year. However, EBITDA margin decreased 180bps yoy largely due to:

    • Phasing from a base effect in H1 2014 due to some non-recurring items,
    • Pricing pressure in France due to an increasingly competitive environment in a sagging market,
    • An unfavorable mix effect in Europe, with stronger growth from lower margin geographies.

    Full-year EBITDA margin decline in France should not exceed 1 percentage point compared to 2014.
    European EBITDA margin should remain flat in 2015.
    As far as Brazil is concerned, operational indicators allow us to be confident for the full-year outlook and we expect EBITDA margin to increase.

    EBITDA to net result

    In m€ H1 2015 H1 2014* Change
    EBITDA 204.6 204.8 -0.1%
    As a % of revenues 30.0% 31.8% -180bps
    Depreciation & amortization (116.9) (105.1)  
    EBIT 87.7 99.7 -12.0%
    As a % of revenues 12.9% 15.5% -260bps
    Banking charges (0.8) (0.5)  
    Operating result before other operating income and expenses 86.9 99.2 -12.4%
    As a % of revenues 12.7% 15.4% -270bps
    PPA depreciation (21.8) (20.5)  
    Goodwill impairment (0.0) (0.0)  
    Other operating income and expenses (26.0) (16.1)  
    Operating result 39.2 62.6 -37.4%
    As a % of revenues 5.7% 9.7% -400bps
    Financial result (144.6) (79.2)  
    Pre-tax result (105.4) (16.5) n/a
    Tax 24.8 (3.7)  
    Equity affiliates 0.0 0.0  
    Net result (80.6) (20.2) n/a

    Percentage change calculations are based on actual figures
    *H1 2014 figures are restated from the first application of the IFRIC 21 interpretation

    EBIT3

    Purchase of linen linked with the implementation of large contracts leads to higher depreciation, impacting EBIT greater than EBITDA. We anticipate EBIT margin for 2015 should fall c. 1 percentage point compared to 2014.

    Operating result4

    PPA depreciation was virtually flat in 2014. These intangible assets were accounted for in 2007 and their amortization period will end in 2018.
    Other operating income and expenses were impacted by c. €21m, corresponding to non-recurring costs related to the IPO.

    Financial result

    Elis completely refinanced its debt in 2015 in 2 stages: (i) as part of the IPO in February, then (ii) on April 22 with the issuance of €800 million of 2022 Notes priced at 3.0%.
    This new financial structure is totally unsecured, without any major maturity before 2020. This leads to a full year interest charge which should be a third of that paid in the prior year.
    In the first half, the breakup fees and expenses of old debt and the issuance of the new notes impacted the Financial result by €102m.

    Net result

    Net result amounted to -€80.6m. It was impacted by c. €123m non-recurring expenses related to the IPO and various debt refinancing charges.

    Other financial items

    Investments

    Group net investments encompass industrial investments and linen investments which were offset by disposals (including the sale & lease of real estate in 2014).
    Capex for the first six months of 2015 amounted to €141.5m. The group undertook some exceptional linen purchases in the context of the implementation of large contracts signed at the end of 2014.

    Operating cash-flow5

    Operating cash-flow was €36.8m in H1 2015 compared to €176.2m in the same period last year. This significant decrease is due to (i) the negative base effect from the sale & lease operation in 2014 (c. €93m), (ii) higher investments over the period and (iii) the unfavorable evolution of working capital requirement in 2015.

    Company free cash-flow6

    Company free cash-flow amounted to -€117.5m in H1 2105. This was impacted by the evolution of Operating cash flow and refinancing costs of €97.8m.

    Adjusted net financial debt7

    Group adjusted net financial debt as of 30th June 2015 was €1,404.5m

    Cash payment for the 2014 financial year

    The Annual General Meeting convened on 24 June 2015 approved the cash payment of €0.35 per share for the 2014 financial year. This payment was implemented on 2 July 2015.

    Investor and Analyst conference call

    Speakers:
    Xavier Martiré, CEO
    Louis Guyot, CFO

    Date: Wednesday, July 29
    6:30 pm Paris time - 5:30 pm London time - 12:30 pm New York time

    Webcast link (live and replay):
    http://edge.media-server.com/m/p/rkskai92

    Webcast replay will be available for 1 year following the event.

    Financial definitions

    1. Organic growth in the Group's revenue is calculated excluding (i) the impacts of changes in the scope of consolidation of "major acquisitions" and "major disposals" in each of the periods under comparison, as well as (ii) the impact of exchange rate fluctuations.
       
    2. EBITDA is defined as EBIT before depreciation and amortization net of the portion of grants transferred to income.
       
    3. EBIT is defined as net income (loss) before net financial expense, income tax, share in income of equity-accounted companies, amortization of customer relationships, goodwill impairment, other income and expense and miscellaneous financial items (bank fees and recurring dividends recognized in operating income).
       
    4. Operating result is defined as net income (loss) before net financial expense, income tax, share in income of equity-accounted companies.
       
    5. Operating cash-flow is defined as EBITDA minus non cash-items and after (i) business-related changes in working capital, (ii) linen purchases and (iii) manufacturing capital expenditures, net of proceeds.
       
    6. Company free cash-flow is defined as Operating cash flow minus interests payments, minus tax paid and minus debt issuance expenses.
       
    7. The concept of Adjusted net debt used by the Group consists of the sum of non-current financial liabilities, current financial liabilities and cash and cash equivalents adjusted by capitalized debt arrangement costs, the impact of applying the effective interest rate method, and the loan from employee profit-sharing fund.

    Forward looking statements

    This release may contain some forward-looking statements. These statements are not undertakings as to the future performance of the Company. Although the Company considers that such statements are based on reasonable expectations and assumptions on the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual performance to differ from those indicated or implied in such statements.
    These risks and uncertainties include without limitation the risk factors that are described in the Document de Base registered in France with the French Autorité des Marchés Financiers.
    Investors and holders of shares of the Company may obtain copy of such annual report by contacting the Autorité des Marchés Financiers on its website www.amf-france.org or directly on the Company website www.corporate-elis.com
    The Company does not have the obligation and undertakes no obligation to update or revise any of the forward-looking statements.

    Next information

    Q3 2015 revenues: November 9, 2015 (after market)

    About Elis

    Elis is a leading multi-services group in Europe and Brazil, specialized in the rental and maintenance of professional clothing and textile articles, as well as hygiene appliance and well-being services. With more than 19,000 employees spread across 12 countries, Elis' consolidated turnover in 2014 was €1.331 billion with consolidated EBITDA of €429 million. Benefiting from more than a century of experience, Elis today services more than 240 000 businesses of all sizes in the hotel, catering, healthcare, industry, retail and services sectors, thanks to its network of 275 production and distribution centers and 13 clean rooms, which guarantees it an unrivalled proximity to its clients.

    Contact

    Investor Relations:
    Nicolas Buron, Investor Relations Director - Phone: +33 1 41 25 46 77 - nicolas.buron@elis.com


    Appendices

    Consolidated income statement for the period*

    In thousands of euros H1 2015 H1 2014
    Revenue 682,396 644,278
    Cost of linen, equipment and other consumables (114,700) (107,514)
    Processing costs (255,210) (226,899)
    Distribution costs (110,830) (103,861)
    Gross margin 201,656 206,004
    Selling, general and administrative expenses (114,752) (106,803)
    Operating income before other income and expense and amortization of customer relationships 86,904 99,201
    Amortization of customer relationships (21,769) (20,482)
    Goodwill impairment 0 0
    Other income and expense (25,970) (16,078)
    Operating income 39,165 62,641
    Net financial expense (144,556) (79,181)
    Income (loss) before tax (105,391) (16,540)
    Income tax benefit (expense) 24,751 (3,655)
    Share of net income of equity-accounted companies 0 0
    Net income (loss) (80,640) (20,194)
    Attributable to:    
    owners of the parent (80,638) (20,378)
    non-controlling interests (2) 184
    Earnings (loss) per share (EPS):    
    basic, attributable to owners of the parent -0.82 € -0.41 €
    diluted, attributable to owners of the parent -0.82 € -0.41 €

    *H1 2014 figures are restated from the first application of the IFRIC 21 interpretation


    Consolidated balance sheet

    Assets

    In thousands of euros 30 June 2015 31 December 2014
    Goodwill 1,564,422 1,536,098
    Intangible assets 393,866 404,383
    Property, plant and equipment 766,865 707,086
    Equity-accounted companies 0 0
    Available-for-sale financial assets 126 168
    Other non-current assets 5,745 6,890
    Deferred tax assets 13,461 12,450
    TOTAL NON-CURRENT ASSETS 2,744,485 2,667,074
    Inventories 57,911 58,641
    Trade and other receivables 351,117 327,863
    Current tax assets 7,272 2,842
    Other assets 12,381 13,461
    Cash and cash equivalents 102,769 59,255
    TOTAL CURRENT ASSETS 531,451 462,062
    Assets held for sale 0 0
    TOTAL ASSETS 3,275,935 3,129,136

    Equity and liabilities

    In thousands of euros 30 June 2015 31 December 2014
    Share capital 1,140,062 497,610
    Additional paid-in capital 320,789 175,853
    Other reserves 724 7,224
    Retained earnings (accumulated deficit) (384,334) (302,299)
    Other components of equity (2,236) (10,111)
    EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 1,075,004 368,277
    NON-CONTROLLING INTERESTS (224) (125)
    TOTAL EQUITY 1,074,780 368,152
    Non-current provisions 26,937 28,997
    Employee benefit liabilities 50,977 48,337
    Non-current borrowings 1,264,656 1,947,291
    Deferred tax liabilities 171,491 197,777
    Other non-current liabilities 20,339 34,373
    TOTAL NON-CURRENT LIABILITIES 1,534,400 2,256,775
    Current provisions 4,172 4,078
    Current tax liabilities 735 892
    Trade and other payables 135,424 139,718
    Other liabilities 279,912 234,836
    Bank overdrafts and current borrowings 246,512 124,684
    TOTAL CURRENT LIABILITIES 666,755 504,208
    Liabilities directly associated with assets held for sale 0 0
    TOTAL EQUITY AND LIABILITIES 3,275,935 3,129,136

    Consolidated cash flow statement*

    In thousands of euros H1 2015 H1 2014
    CASH FLOWS FROM OPERATING ACTIVITIES    
    CONSOLIDATED NET INCOME (LOSS) (80,640) (20,194)
    Depreciation, amortization and provisions 137,613 123,817
    Portion of grants transferred to income (59) (66)
    Share-based payments 345 0
    Discounting adjustment on provisions and retirement benefits 466 629
    Net gains and losses on disposal of assets 274 (3,966)
    Share of net income of equity-accounted companies 0 0
    Other (1,141) 0
    Dividends received (from non-consolidated entities) (12) (13)
    CASH FLOWS AFTER FINANCE COSTS AND TAX 56,846 100,207
    Net finance costs 75,206 77,881
    Income tax expense (24,751) 3,655
    CASH FLOWS BEFORE FINANCE COSTS AND TAX 107,301 181,742
    Income tax paid (11,563) (3,097)
    Change in inventories 1,090 (7,211)
    Change in trade receivables (15,616) (19,575)
    Change in trade and other payables (excluding borrowings) (17,923) 19,660
    Other changes 6,088 3,501
    Employee benefits 289 (231)
    NET CASH FROM OPERATING ACTIVITIES 69,666 174,789
    CASH FLOWS FROM INVESTING ACTIVITIES    
    Acquisition of intangible assets (3,143) (1,844)
    Proceeds from sale of intangible assets 0 0
    Acquisition of property, plant and equipment (138,334) (113,585)
    Proceeds from sale of property, plant and equipment 386 92,329
    Acquisition of subsidiaries, net of cash acquired (52,377) (90,527)
    Proceeds from disposal of subsidiaries, net of cash transferred 1,000 1,000
    Changes in loans and advances 300 116
    Dividends from equity-accounted companies 12 13
    Investment grants 11 0
    NET CASH USED IN INVESTING ACTIVITIES (192,145) (112,498)
    CASH FLOWS FROM FINANCING ACTIVITIES    
    Capital increase 689,418 43,000,
    Treasury shares (1,002) 0
    Dividends paid    
     - to owners of the parent 0 0
     - to non-controlling interests 0 0
    Change in borrowings (472,059) (34,637)
     - Proceeds from new borrowings 2,088,639 682,787
     - Repayment of borrowings (2,560,698) (717,424)
    Net interest paid (52,466) (58,378)
    Other flows related to financing activities 1,231 0
    NET CASH USED IN FINANCING ACTIVITIES 165,122, (50,015)
    NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 42,643 12,276
    Cash and cash equivalents at beginning of period 58,523 48,598
    Effect of changes in foreign exchange rates on cash and cash equivalents 309 743
    CASH AND CASH EQUIVALENTS AT END OF PERIOD 101,475 61,617
         

    *H1 2014 figures are restated from the first application of the IFRIC 21 interpretation




    This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
    The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
    Source: Elis via Globenewswire

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    Elis H1 2015 results H1 2015 results - Revenues up nearly 6%2015 outlook: revenues expected to grow +7%; EBITDA between €445m and €450m Revenue growth of c. 6% Revenue: €682.4m (+5.9%) EBITDA: €204.6m (30.0% of revenues) Pricing pressure in France …